# Thailand’s economy weakened in August due to drops in agriculture and industry

- Link: https://www.thailand-business-news.com/banking/249404-thailands-economy-weakened-in-august-due-to-drops-in-agriculture-and-industry
- Published: 2025-10-07T11:45:32+07:00
- Author: Stephanie Chu

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**The Thai economy weakened due to lower agricultural and industrial output, though
tourism improved. Merchandise exports, particularly to the U.S., declined. Key areas
to monitor include manufacturing, trade policies, and tourism performance.**

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## Summary

 * The Thai economy softened from the previous month, due to weaker agricultural
   and industrial output, which weighed on trade and freight transport services.
   In contrast, the tourism sector improved, supported by both domestic and foreign
   tourism. Meanwhile, merchandise exports, private consumption and investment remained
   stable. Manufacturing production continued to decline due to sluggish demand 
   in some sectors, high inventory levels in certain products, and temporary production
   halts.
 * Merchandise exports to the U.S. declined for the first time since the implementation
   of U.S. import tariffs as well as electronic product exports softened slightly,
   after several months of strong growth.
 * Employment conditions remained broadly stable, however, the construction sector
   continued to deteriorate. Meanwhile, the ratio of total and new unemployment 
   claimants to total insured people declined. 
 * Key issues to monitor include: 1) the recovery of manufacturing production 2)
   the impact of U.S. trade policies, 3) the performance of the tourism sector, 
   and 4) government stimulus measures

The Thai economy weakened in August due to declines in agriculture, manufacturing,
and related services. Manufacturing, especially in automobiles and food, suffered
from weak demand and high inventories. Private consumption, investment, and merchandise
exports remained stable, while electronic exports decreased. Tourism improved with
higher revenue from domestic and foreign visitors. Government spending slightly 
contracted due to reduced capital expenditures.

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**Source** : [https://www.bot.or.th/en/news-and-media/news/news-20250930-2.html](https://www.bot.or.th/en/news-and-media/news/news-20250930-2.html?rand=113190)